Question

Daily Rental Rates of Mid-Size Cars (5) New York Chicago Miami 63.99 68.99 59.99 Hertz 48.99 68.99 53.99 74.99 52.99 59.99 64.86 91.99 54.99 Avis 83.10 70.99 63.99 85.98 97.99 70.99 46.00 53.00 National 68.00 94.99 84.00 89.99 85.99 52.00 68.99 ANOVA Source of Variation df Company Location SS 1010.4581 1486.9756 1211.6003 2191.9089 2 2 4 18 MS 505.2291 743,4878 302.9001 121.7727 Interaction within Total 5900.9420 26 Step 2 of 2: Make the decision to react or fail to reject the null hypothesis of equal average daily rental rates for the three companies and state the conclusion in terms of the original problem be sure to test for interaction first use a 10.10.

Answer 1

For companies:

F = 505.2291/121.7727 = 4.15

Critical value = 2.62

Since calculated F is greater than critical value, we reject Null Hypothesis.